One of the architects of the coalition government has warned
that public services could deteriorate as a result of the Treasury’s
deep spending cuts.

Liberal Democrat MP David Laws has urged prime
minister David Cameron to ‘watch carefully’ developments over the next
few years, as the combination of cuts and high marginal tax rates facing
middle and low income households could undermine the coalition’s plan
to stabilise the UK’s finances.

Public sector managers, he warns, will be key to delivering effective responses to the financial crisis.

Mr Laws played a key part in negotiating the
Conservative-Liberal Democrat coalition following May’s general
election, and briefly held the Cabinet post of Treasury chief secretary
before standing down just weeks into the following revelations about his
private life and his use of taxpayer funded entitlements.